What are the advantages of buying real estate at auction?
Buying real estate at auction allows you to experience a quick purchase and closing, eliminates lengthy negotiations, and provides the assurance the price paid was market value. The buyer can determine the price that they pay without lengthy negotiations. Many buyers receive significant discounts while buying at auction.
Why are properties sold at auction?
Owners make the business decision to sell property by auction to take advantage of the comprehensive marketing and the quick and immediate time frame not provided by conventional brokerage. We look closely at each property to ensure that the seller is providing all necessary due diligence and attractive reserve prices.
Are your auction properties bank foreclosures? / Who are the sellers?
Some of our properties are foreclosures; however, our auction properties come from banks, lenders, and private individuals who know and understand the Value of Selling at Auction.
Where will the auction be held?
We hold all of our auctions on site or in a hotel ballroom setting. The auction on May 20 will be held at the Westchase Hilton on Westheimer.
How will the auction be conducted?
The auction will be called by live open bidding. As a bidder, all you need to do is hold up your bidder card that you receive when you register and call out your bid, or tell one of Clay & Company’s representatives what amount you want to bid.
What is the starting or minimum bid?
Our auctions are conducted with the open bidding system. A starting bid comes from qualified bidders who are attending the auction. There is no beginning or minimum bidding price. The price that a property will sell for will depend on whether an auction is Absolute or if it has a reserve. Please see specific property site packages to the reserve price information.
What is an Absolute Auction?
An absolute auction is an auction where the property is sold to the highest bidder regardless of price. An absolute auction has no minimum and no reserve.
What is a Reserve Price?
The reserve price is the minimum price that a seller is willing to accept for a property.
What is a Buyer’s Premium?
A buyer’s premium is a percentage of the high bid added on to the bid amount. Buyer premiums are used by many auction houses as a means of helping to cover the cost of the event. It is an amount added to the high bid and payable by the buyer to Clay & Company at the closing of the transaction. Clay & Company typically requires a 4% Buyer’s Premium; however, please check the Terms and Conditions for individual auctions.
As a purchaser of a tax delinquent property will I be responsible to repay the municipality the past due taxes? / Is there a lien on the property?
All of our properties are being sold with a clear title and no delinquent back taxes.
Is financing available?
We can arrange financing for most properties and some auction properties have seller financing available. Please see the terms for each individual property. We recommend that financing be arranged prior to the auction. Please talk to one of Clay & Company’s representatives and we will work to arrange financing options for you.
Can I see the Earnest Money Contract before the auction?
Yes, we will be on hand one hour prior to auction and will have all Earnest Money Contracts for potential buyers to review.
To whom do I talk to if I don’t understand the auction contract?
It is very important that you feel comfortable regarding the auction process. Please talk to one of our representatives to make sure all of your questions and concerns are answered before you bid at the auction.
Can I be represented by a Real Estate Broker at the auction?
Yes, we encourage buyer-broker participation; however, a real estate broker who represents the buyer must attend the auction and be registered as the buyer’s broker prior to the start of the auction.
I cannot attend the auction. Can I still put in a bid on something?
We are happy to help you if you are interested in an auction property but cannot attend. We can arrange phone-in bids where a Clay & Company representative will call you at the start of the bidding. We also accept signed written absentee bids where you tell us what items you would like to bid on and how high you will go.
What is required in order to bid at an auction?
Registration is necessary to be eligible to bid at a Clay & Company auction. Prospective bidders can register online or at the auction site beginning one hour prior to the auction. A certified or cashier’s check made payable to Clay & Company must be presented on auction day in order to complete the bidder registration process. Please see specific auction terms and conditions for amount.
If I am not the successful high bidder, will I recieve my deposit check back?
Yes
I’ve never been to an auction before. What do I do?
If you see a property that you are interested in please call the auction office and request a Property Information Package. In addition, your complete inspection of each property is recommended. Once you decide which property or properties you would like to bid on, registration is necessary to be eligible to bid. Prospective bidders can register online or at the auction site beginning one hour prior to the auction. A certified or cashier’s check made payable to Clay & Company must be presented on auction day in order to complete the bidder registration process. Please be aware if you are the successful high bidder you will be required to enter into an earnest money contract.
What happens once I have become the successful high bidder?
The successful high bidder on each property will be immediately escorted to the contract signing table where he or she will be required to sign an Earnest Money Contract verifying the amount bid and the property purchased. An earnest money deposit of 10% of the purchase price is due at this time. The certified or cashier’s check surrendered at registration will be attributed to this deposit. Each sale will close as specified in the Earnest Money Contract. This is generally on or before 30 days from the auction date.
Do I have to make any more deposits other than my initial deposit before closing?
Usually you must increase your initial deposit to a total of 10% of the purchase price upon execution of the contract, which takes place at the auction. You may pay this additional amount by personal, company, or cashier’s check.
How long do I have to get financing after the auction?
We suggest, if financing is required to complete a purchase, you arrange and pre-qualify with a lender prior to the auction date. If you fail to pay the balance due by the closing date, you will forfeit your earnest money.
Is my deposit refundable if I change my mind after the sale and decide not to buy the property?
No. If a buyer does not close for any reason on or before the closing date, the initial earnest money deposit will be forfeited.
When and where are closings held?
Closings generally occur within 30 days of an auction at the title company. Since the seller typically pays for title insurance, a company has been selected and will be provided to you in the when you sign the contract.
It’s that simple for you to own one of our auction properties! Have more questions? Contact us by phone or email or come early to the auction. We want you to feel comfortable and we are here to help!
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